Analyst/Investors, please contact:
Barry Zwarenstein, Iomega Corporation, (858) 795-7188

For Immediate Release

Iomega Signs Definitive Agreement for the Sale of its Manufacturing Subsidiary

SAN DIEGO, Sept. 30, 2002 - Iomega Corporation (NYSE: IOM), a global leader in digital management and storage solutions, announced today that it has agreed to sell its Penang, Malaysia manufacturing subsidiary to Venture Corporation Limited ("Venture"). The transaction is subject to customary closing conditions, including Malaysian government approvals, and is expected to close during the fourth quarter of 2002. Upon closing, Iomega will enter into a five-year manufacturing services agreement with Venture and Iomega's former Malaysian subsidiary for the manufacture and supply of Zip drives and certain other products.

"This transaction and strategic alliance is another significant step in Iomega's strategy of continuously improving its cost efficiencies and focusing on its core strengths - product innovation, brand equity, and global market success," said Werner Heid, President and CEO of Iomega. "As we had previously announced, our manufacturing facility in Malaysia has been underutilized. We expect that, after a transitional period, this transaction with Venture will allow us to realize reduced operational overhead and more variable product costs."

Venture, headquartered in Singapore, is a leading provider of electronics manufacturing services, original design manufacturing services, and distribution services to electronics companies worldwide. This transaction expands and extends the strong and mutually beneficial printed circuit board assembly sourcing relationship that has existed between these companies for several years. Venture was selected through a competitive bidding process based upon its cost efficiencies, manufacturing expertise, and knowledge of Iomega's products. Under the manufacturing services agreement, Venture will manufacture Zip drives and other products for Iomega utilizing the Penang operations and employee workforce. Iomega believes this will facilitate a smooth transition of manufacturing operations.

Under the agreement, Venture will purchase all of the stock of Iomega Malaysia Sdn. Bhd. for a cash payment to Iomega of approximately US$8 million, resulting in a pre-tax loss to Iomega of approximately US$11 million. This purchase price is based on an estimate of the net book value at closing of the assets of Iomega Malaysia, net of certain negotiated adjustments. The actual amount paid by Venture and the final amount of the pre-tax loss may vary depending on the net book value of the assets of Iomega Malaysia on the closing date.

In addition to the approximately US$11 million pre-tax loss discussed above, as a result of this divestiture, Iomega also expects to record a U.S. tax liability of approximately US$39 million relating to past foreign earnings that will no longer be considered to be permanently invested abroad. This additional tax liability is expected to be partially offset by a reduction in Iomega's tax valuation allowance of approximately US$13 million for net deferred tax assets, resulting in an increase in the net tax provision of approximately US$26 million. Iomega does not expect that it will be liable, as a result of this transaction, to make cash payments for U.S. taxes unless it were to later decide to repatriate these foreign earnings.

The aggregate net after tax loss attributable to the transaction is expected to be approximately US$37 million, or US$0.72 per share. Iomega will record these charges in the third quarter.

Iomega also announced plans to release its third quarter 2002 financial results after the close of markets on Thursday, October 17, 2002. A conference call to discuss Iomega's third quarter results will be broadcast over the Internet on October 17 at 4:30 p.m. Eastern Time. The live webcast and replay will be available to interested parties over the Internet at http://www.iomega.com/about/investor/.

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About Iomega Corporation
Iomega Corporation provides easy-to-use, high value storage solutions to help people protect, secure, capture and share their digital valuables. Iomega's award-winning storage products include the popular Zip® 100MB, 250MB and 750MB drives, high performance Iomega® HDD portable hard drives that feature capacities from 20GB to 30GB, Iomega® HDD external hard drives that offer capacities from 40GB to 120GB, and Iomega® external CD-RW drives. Iomega simplifies data protection and sharing at home and in the workplace with Iomega® Automatic Backup software, Iomega® Sync software, and HotBurn® CD-recording software. For networks, Iomega® NAS servers offer capacities of 120GB to 480GB. The Company can be reached at 1-888-4-IOMEGA (888-446-6342), or on the Web at www.iomega.com.

Special Note Regarding Forward-Looking Statements
The statements contained in this release regarding the expected closing date, the goals to continuously improve cost efficiencies and to focus on core strengths, the expectation to realize reduced operational overhead and more variable product costs, the goal to achieve a smooth transition of the Penang manufacturing operation, the estimated net amount to be paid to Iomega under the stock sale agreement, the estimated tax liabilities, and all other statements that are not purely historical, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are based upon information available to Iomega as of the date hereof, and Iomega disclaims any intention or obligation to update any such forward-looking statements. Actual results could differ materially from the current expectations. Factors that could cause or contribute to such differences include unforeseen difficulties in meeting closing conditions or obtaining various Malaysian government approvals, the results of the post-closing audit of Iomega Malaysia's balance sheet, unforeseen difficulties in transitioning the Penang manufacturing facility to Venture ownership, product delays, disruptions or quality issues caused by unforeseen difficulties in integrating IT systems, business or quality processes, loss of key personnel in the transition, availability of critical product components, the failure or delay of any sole source supplier (including Venture), products and technology obsolescence, general economic and/or industry-specific conditions and the other risks and uncertainties identified in the reports filed from time to time by Iomega with the U.S. Securities and Exchange Commission, including Iomega's most recent Form 10-Q and Annual Report on Form 10-K.